Opinion
Why bonds still matter in your portfolio
Given lower expected returns, they’re a diversifier of overall risk, with shares still likely to do the heavy lifting in delivering return requirements.
Aidan GeysenContributorA recent narrative questioning the merit of a diversified portfolio of traditional equities and bonds has had many in the investment management industry asking: “Is the 60:40 portfolio dead?”
Generally referred to as a balanced portfolio, 60:40 refers to a mix of 60 per cent equities and 40 per cent bonds. It is a universal portfolio construct designed to deliver sufficient returns for a range of investor goals while providing adequate diversification to satisfy the risk tolerance of the investor.
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